Time Warner sets December date for AOL spin off

JohnLetzing

SAN FRANCISCO (MarketWatch) - Time Warner Inc. said Monday it will spin off Internet unit AOL on Dec. 9, when investors will receive one AOL share for every eleven shares of the media giant that they own.

Time Warner
TWX, +0.72%
said in a statement that shareholders as of Nov. 5 p.m. on Nov. 27 will be eligible to receive AOL stock. Fractional shares will be aggregated and sold in the open market, the company said, with proceeds distributed as a cash payment on a pro rata basis.

Shares of AOL will trade on the New York Stock Exchange starting Dec. 10 under the symbol "AOL," Time Warner said.

Time Warner, which announced its intention to spin off AOL in May, said earlier this month that a significant part of its 6% drop in third-quarter revenue was attributable to declines at the Internet unit.

AOL lost over 400,000 subscribers in the period, and its online advertising sales fell 18%, Time Warner said.

Once best known for its popular Internet access service, AOL has sought recently to transform itself into an advertising-based Internet content network, featuring sites such as the Bebo social networking service and TMZ celebrity news.

As part of its restructuring, AOL said in January it planned to cut about 700 jobs, or 10% of its workforce.

Time Warner merged with AOL in an ill-fated, $106 billion deal in 2000.

Time Warner shares fell more than 1% in after-hours trading, to $31.83.

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